Former Opposition leader Malcolm Turnbull has announced he is quitting federal politics at the next election.

Mr Turnbull, who lost the Liberal leadership in December, ended the speculation about his future by announcing his decision in a statement on his website today.

"I thank the people of Wentworth for their support over the last five-and-a-half years," he said.

"I have enjoyed serving and working with them enormously. There is truly no greater privilege than representing your own community in our national Parliament."

Mr Turnbull said while he has received encouragement from his supporters to stay on, after careful reflection he had decided to resign and would now pursue opportunities with his wife Lucy in the private sector.

"A decision like this is a very personal and heartfelt one which can only be made by me and my family," he said.

Mr Turnbull also thanked former prime minister John Howard for allowing him to serve as environment minister, but he did not resist taking a swipe at new leader Tony Abbott for ditching Liberal Party support for an emissions trading scheme.

"I regret that another important reform begun during that time, the establishment of an emissions trading scheme, is no longer Liberal Party policy," he said.

But he has wished Mr Abbott "every success" in the run up to the election.

For his part, Mr Abbott said the Parliament was losing a "rare and remarkable" talent.

"In just two terms, Malcolm has scaled the commanding heights of Australian politics," he said.

"It is a great honour and privilege to lead a major political party and Malcolm discharged that duty with integrity and intellectual honour."

Mr Turnbull was replaced by Mr Abbott after Liberal MPs revolted against his stance on emissions trading.

He had indicated he was ready to return to the Opposition frontbench after the resignation of Senator Nick Minchin almost two weeks ago.

Mr Abbott rebuffed his offer, but said there would be a frontbench space for him after the next election and after Parliament had dealt with the ETS legislation

The former barrister and merchant banker was elected to Parliament for the blue ribbon Sydney seat of Wentworth in 2004 and was promoted to the frontbench by John Howard in 2006 as his parliamentary secretary.

In January 2007 he became environment minister.

After the Coalition's 2007 election loss Mr Turnbull became treasury spokesman under then-leader Brendan Nelson, but he did not hide his leadership ambitions and speculation of a challenge was never far away.

In September 2008 as Dr Nelson was floundering, Mr Turnbull took hold of the leadership.

But he fared little better in the polls and went backwards in the wake of the OzCar scandal that saw him take a hit over his political judgment.

Support for Mr Turnbull's leadership began to fracture in the second half of last year as resistance grew to his support for an emissions trading scheme.

Some in the Liberal partyroom complained of Mr Turnbull's leadership style and he was criticised for not consulting enough with others over the Coalition's climate change policy.

Finally in December, after only 11 months in the top job, he lost the leadership by just one vote to the more conservative and hardline Mr Abbott following the frontbench revolt.

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